Steel City Re’s parametric reputation insurances, ESG insurances, and risk management advisory services mitigate the hazards of ESG and Reputation risk.
Where we are now…
Steel City Re mitigates the hazards of ESG and reputation risk. We are the exclusive provider of parametric insurances and risk advisory services using framework informed by behavioral economics. Companies advised and insured through us can tell a simple, credible and completely convincing story of responsible risk management and dutiful governance that is appreciated and valued by stakeholders. In response, customers will buy more at higher prices; employees will more willingly rent their services, vendors and creditors will provide better terms, investors will be more bullish, and regulators will be more understanding..
Our quantitative methodology has been validated over two decades through equity markets strategies; e.g., (INDEXCME: REPUSTARS). Our lead risk-bearer is Tokio Marine Kiln. Our strategic and bespoke parametric solutions are unlike any other offered in today’s open market.
Where it all began…
Our roots trace back to several parallel explorations of intangible asset valuation, management, monetization, and risk transfer beginning in the late 1990’s. Some of these efforts were reflected in the activities of The Patent & License Exchange, an award-winning dotcom-era market for technology real options, aka patents, whose international expansion was memorialized in a Harvard Business School case study. Other efforts were reflected in the programs and publications of the Intangible Asset Finance Society, which were memorialized in the books,, Mission Intangible (IAFS: 2010) and Reputation, Stock Price and You (Apress: 2012).
Another thread traces back to exposures to intelligence operations during Nir Kossovsky’s tour of duty in the United States Navy Reserve and graduate of the Naval War College, and Peter Gerken’s tour of duty in the United States Army. Combining these intelligence operations experiences with our civilian work, we appreciated how the new corporate threats were enterprise-wide and were as likely to arise from internal matters as they were from changes in the social and cultural environment. The Economist recognized this as “reputation,” and crowned it the “risk of risks.” We formed Steel City Re to estimate the value of a firm’s reputation premium and mitigate the hazards that imperiled it.
We began by capturing data on a weekly basis on 7800 public companies, developing equity indexes based on companies’ reputational metrics, and offering this data to Wall Street via REPUSPX, while concurrently offering analytical and consulting services to the corporate market based on the same reputation value and risk ontology.
Further, we announced in March of 2021 that equity portfolios built algorithmically on 1,000 weeks of Reputational Value Metrics have– over 15 years– outperformed both the net asset value (NAV) of MSCI USA ESG Select ETF, one of the oldest ESG funds, and the price returns of Berkshire Hathaway, a firm chaired by reputation-savvy Warren Buffet. Our nearly 7 million Reputation Value Metrics—synthetic measures of reputation value gathered over 20 years—continue to empower third-party investment strategies and equity indices.
In 2012, we were approached by Tokio Marine Kiln, a Lloyd’s syndicate, which provided the initial risk-bearing capital that enabled Steel City Re to use those same reputation value metrics and analytic tools to underwrite and provide reputation insurance products to companies that met its objective mathematical criteria for superior reputation risk management.
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